Venture Capital Funding

Osney Capital closes a $50 million fund to invest in cybersecurity startup London-based #VC firm #Osney Capital has announced the close of its debut £50 million fund, focused on early-stage cybersecurity startups in the UK. Backed by the British Business Bank, East X Ventures, and US-based IronGate Capital Advisors, the fund will target around 30 investments at pre-seed and seed stages, with cheques ranging from £250k to £2.5m. Founded by Joshua Walter, Paul Wilkes, and Adam Cragg, Osney Capital positions itself at the intersection of innovation and national security. Walter, formerly at NCC Group, brings deep cybersecurity expertise, while Wilkes and Cragg add legal and institutional experience. The firm is accredited by the UK’s National Security Strategic Investment Fund, underlining its technical credibility and alignment with national priorities. With the UK cybersecurity market generating over £13 billion in annual revenue and facing increasing regulatory and threat-driven demand, Osney aims to back the next generation of cyber founders. The fund’s goal is to turn UK-based innovation into globally relevant solutions, reinforcing digital sovereignty and the country's leadership in #cybersecurity. The article on Sifted in the first comment.

What happens when African fund managers lead the investment strategy? In a recent CNBC Africa interview, DOROTHY NYAMBI, CEO of MEDA (Mennonite Economic Development Associates) shared powerful insights into how the Mastercard Foundation Africa Growth Fund is reimagining what it means to put African capital in African hands. The Fund demonstrates that capital can be reimagined and redirected to serve African fund managers, entrepreneurs, and especially women, using a gender-lens and locally led investment model that: 1. Rethinks gender-lens investing • It’s not about ticking diversity boxes- it’s about empowering women with real agency to influence investment decisions and strategy. • The Fund emphasizes patience and local context, shaping investment approaches to suit real-world African realities rather than imposing external templates. 2. Builds local ecosystems • Local leadership matters. The Fund invests in and supports African and female-led managers, ensuring they are not just invited to the table- but leading it. • It enables fund managers to spearhead strategy and draw in other stakeholders, strengthening the investment ecosystem from within. 3. Focuses on returns “on inclusion” • The Fund measures more than financial returns. It prioritizes social impact, like job creation and economic empowerment. • The goal: dignified, sustainable employment, particularly for African youth, moving beyond short-term fixes. 4. Is intentional about youth and women inclusion • The Fund challenges outdated narratives that investing in women is riskier, instead proving the financial viability of women-led enterprises. • It applies a holistic, end-to-end gender lens, supporting women as entrepreneurs, fund managers, and drivers of growth across the value chain. Impact so far: • ~US$150 million deployed across 18 African-led investment vehicles • 49 SMEs supported in 12 countries • 2,500 full-time jobs created, with 1,100 held by women • 75% of supported vehicles are female-led • Honored with the DEI Award at AVCA’s 20th Anniversary Conference In essence, African-led, gender-smart capital flows are delivering equity and economic resilience. Fund managers and entrepreneurs are shaping outcomes with a clear focus on inclusion, impact, and sustainability. This is a transformative model where African and female-led fund managers are no longer just recipients of capital, but drivers of it, reshaping the investment landscape to deliver both financial returns and lasting, meaningful change across the continent. Watch the full interview: https://lnkd.in/d9SuiuSj #Africa #GenderLensInvesting #InclusiveCapital #ImpactInvesting #Leadership #YouthEmployment

Pre-IPO cybersecurity vendors (a mixture of startups and late-stage series funding) collectively secured US$2.07 billion in new funding during Q4 2024, marking a 23% increase from the previous year. However, this amount fell short of the six-year quarterly median.   The good news: funding levels improved overall for full-year 2024, up 41% on 2023, indicating signs of an easing of the funding crunch.   The bad news: Despite this improvement, total funding was still 49% lower than the peak of the funding boom in 2021, when interest rates were at their lowest.   This might be a long-term correction in cybersecurity startup valuations, certainly in the era of mid-to-low single-digit interest rates. Consequently, they will have to remain more conservative with hiring and expansion plans than in the past. Nevertheless, startups are a vital source of innovation. Many are acquired, while some succeed in establishing themselves as leading vendors. However, without funding and a return for investors, this cycle will break. According to the latest research:   • Funding in 2024 was concentrated among fewer vendors, though this varied quarter-to-quarter, with the number of deals down 4%. Late-stage funding (Series D and beyond) doubled, accounting for 29% of the total.   • Vendors headquartered in the US secured 77% of the total funding last year. Those based in France accounted for 7%. Israeli-based vendors secured 5% in 2024, a significant drop from 12% in 2023.   • Some of the largest funding rounds in 2024 were secured by vendors focused on cloud security (Wiz, Upwind Security), email security (Abnormal Security, Sublime Security), identity security (Semperis, Silverfort), data security (Cyera), managed services (I-Tracing, Huntress), and OT security (Armis, Claroty, Nozomi Networks).   • 62 pre-IPO cybersecurity vendors have secured more than US$300 million to date, totalling US$37.16 billion, of which 78% was secured since the start of 2020. The top 20 have secured US$19.19 billion.  • Wiz, Netskope, Snyk, OneTrust, Securonix, Tanium and Fireblocks have secured US$1 billion or more in funding. 

I used to think Africa’s LP base was one crowd. Then we mapped 300+ of them 🗺️ It’s actually at least four different groups (so far)! 𝗚𝗿𝗼𝘂𝗽 𝟭: 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 & 𝗽𝗼𝗹𝗶𝗰𝘆 𝗺𝗼𝗻𝗲𝘆 🎋 Europe sets the tone. British International Investment / Proparco / KfW / FMO - Dutch entrepreneurial development bank / European Investment Bank (EIB) / EBRD anchor the DFI group, with the US present but not dominant. If your strategy needs concessional or blended layers, start here. 𝗚𝗿𝗼𝘂𝗽 𝟮: 𝗪𝗼𝗿𝗸𝗲𝗿𝘀’ 𝘀𝗮𝘃𝗶𝗻𝗴𝘀 👷 The Pension/Insurance room is unmistakably US-led. Large US schemes show up again and again, while South Africa is the continental anchor (Government Employees Pension Fund / Public Investment Corporation, plus sector funds). This is where long-duration, governance-heavy mandates live. 𝗚𝗿𝗼𝘂𝗽 𝟯: 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰𝘀 & 𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲𝘀 🏢 A surprise: Japan is loud and ever present - Marubeni, ENEOS, TOPPAN, JGC - alongside the US on corporates and strategics LPs. South Africa tops the corporate count inside Africa. If you’re selling distribution, supply chains or JV logic, this group may answer you faster than you’d expect. 𝗚𝗿𝗼𝘂𝗽 𝟰: 𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 🏦 The Investment Bank/Insurance corner looks more Levant & Maghreb than many assume, Lebanon/Egypt/Morocco feature repeatedly, with Nigeria and Taiwan/Hong Kong also in the mix. Across groups, Asset Managers, Foundations and Funds-of-Funds over-index in the US, while South Africa is the most frequent African HQ across types. And so far, we've only tracked a handful of Sovereign Wealth Funds with consistent commitments in the region. 𝗦𝗼 𝘄𝗵𝗮𝘁? • If you're fundraising, don’t “spray and pray”. Match LP type × HQ to your pitch. • Depending on your thesis, if you’re underweight Japan/South Africa corporates, you’re likely leaving money on the table. • Policy people: deepening local pensions/insurance is how we localise the capital stack. 𝗦𝗰𝗼𝗽𝗲 & 𝗰𝗮𝘃𝗲𝗮𝘁𝘀 This view covers 300+ prominent LPs that have funded or invested in Africa, from the 500+ we currently track and are building profiles for. I personally think by the time we are done, the LP universe may look closer to 1k+. Treat this as a floor, not the ceiling - and help us complete the map! LP Profiles are now live on the Stears platform with a full screener to search by type, preferences, mandate, historical commitments etc. DM for a walkthrough or to suggest additions. #Fundraising #LPs #GPs #PrivateCapital #Africa

Last week I posted about cybersecurity M&A activity this year. Now we turn our sights to industry funding from pre-seed to series H. A total of $3.03 billion was invested in 167 pre-IPO cyber vendors in 3Q25, which was up 48% from last year. 64 of those vendors stand out as having raised over $300 million each to date. Collectively, $40.3 billion has been raised by these vendors, 82% of which was secured since the start of 2020. Two countries make up 88% of the funding activity - US at 70% and Israel at 18% - other large countries are in low single digits. Who is securing the most investment in 2025 and making investments in partners? Quantinuum ($600 million) - Delivers quantum-safe encryption and key generation to protect digital systems. Cyera ($540 million) - Data security specialist combining DSPM, DDR, DAG and discovery and classification. ReliaQuest ($500 million) - GreyMatter platform automates detection and prioritizes remediation. MSSP services. Cato Networks ($359 million) - Delivers cloud-native SASE platform for secure networking and threat prevention. Chainguard ($356 million) - Builds secure, minimal containers to strengthen software supply chains. Other notable vendors on the rise are ID.me ($340 million), Island ($250 million), Ontic ($230 million), Persona ($200 million), and Tailscale ($161 million). There is a 21-page report that does a deep dive on these (quickly) emerging cyber firms published every quarter for our Omdia clients.

𝗪𝗵𝘆 𝗔𝗳𝗿𝗶𝗰𝗮𝗻 𝗦𝘁𝗮𝗿𝘁𝘂𝗽𝘀 𝗔𝗿𝗲 𝗥𝗲𝗷𝗲𝗰𝘁𝗶𝗻𝗴 𝗧𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗗𝗲𝗯𝘁 & 𝗘𝗾𝘂𝗶𝘁𝘆 (And What We Need Instead) Global investors keep offering African founders two broken choices: - Debt that strangles cashflow with rigid repayments. - Equity that demands 10X growth or dilutes us into irrelevance. Here’s why neither works for Africa—and what actually does. The 𝗣𝗿𝗼𝗯𝗹𝗲𝗺: Mismatched Capital Expectations 1. Debt is a Noose for Startups - Banks want collateral (land, assets) most founders don’t have. - High interest rates (15-25%) eat profits before scaling even starts. - Reality: Only 5% of African SMEs access formal credit (IFC). 2. Equity is a Colonization Playbook - VCs demand "Silicon Valley growth" in markets with infrastructure gaps. - Forced hypergrowth burns cash, kills unit economics. - Data: 60% of African startups fail post-Series A (Briter Bridges). 3. Global Capital ≠ African Realities - Investors want to deploy $5M+ at 20X valuations. - African startups need $10K–$500K to prove traction first. The 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻: Flexible, Founder-Friendly Alternatives 𝗔. Revenue-Based Financing (RBF) - Get $10K–$500K, repay 5-10% of monthly revenue. - Example: A Kenyan e-commerce biz scaled to $1.5M ARR with RBF (no equity loss). 𝗕. Convertible Grants - Non-dilutive cash that converts to equity only if milestones are hit. - Who’s Doing It: AFDB Labs, ARM Labs Lagos. 𝗖. Community & Customer Funding - Pre-sell subscriptions, leverage crowdfunding - Example: A Nigerian fintech raised $200K from 1,000 users pre-launch. 𝗗. Strategic Corporate Partnerships - Corporates provide cash + distribution for revenue-sharing, not equity. 𝗪𝗵𝘆 𝗧𝗵𝗶𝘀 𝗙𝗶𝘁𝘀 𝗔𝗳𝗿𝗶𝗰𝗮 - No collateral traps → Aligns with asset-light models. - No equity grabs → Founders keep control. - Smaller checks → $10K–$1M is enough to prove traction locally. We don’t need ‘more capital’—we need better capital. 👉 𝗧𝗮𝗴 a founder who’s stuck in the debt/equity trap. 👉 𝗥𝗲𝗽𝗼𝘀𝘁 if you’ve seen this mismatch hurt African startups. #AfricanStartups #FundingGap #StartupFinance #DebtTrap #EquityDilution #FounderProblems #RevenueBasedFinancing #AlternativeFunding #SmartCapital

Excited to share the insightful report "Development Banks and Energy Planning: Attracting Private Investment for the Energy Transition - The Brazilian Case" by IRENA and BNDES. This report offers valuable lessons for emerging markets and developing economies (EMDEs) navigating the complexities of financing the energy transition. Key Takeaways: 1️⃣ The report highlights the vital role of development banks like BNDES in de-risking renewable energy projects, providing access to low-cost financing, and fostering a supportive investment environment. BNDES's success in financing renewable energy projects in Brazil, even surpassing international levels, showcases their impactful contribution. 2️⃣ Brazil's success stems from a well-established energy planning and finance strategy, coordinated by key institutions like the Energy Research Office (EPE), the Ministry of Mines and Energy (MME), and BNDES. 3️⃣ Brazil's well-designed power auctions, coupled with long-term power purchase agreements (PPAs), have proven highly effective in attracting private investment and ensuring a stable revenue stream for renewable energy projects. 4️⃣ The report emphasizes the importance of de-risking mechanisms, such as blended finance, green bonds, and risk mitigation instruments, in attracting private capital to EMDEs. 5️⃣ BNDES's strategic focus on promoting renewable energy sources projects demonstrates their commitment to the energy transition and aligns with Brazil's nationally determined contribution. 6️⃣ BNDES's financial support has not only driven the deployment of renewable energy but also fostered the development of a robust domestic supply chain, particularly in the wind energy sector, creating jobs and boosting local economies. 7️⃣ The report underscores the importance of having qualified staff in energy planning and development finance institutions to design effective strategies, manage complex projects, and provide tailored financial solutions. Challenges: ✴️ Attracting private investment to EMDEs remains a challenge due to higher perceived risks and the competition from mature markets. ✴️ Investing in less mature low-carbon technologies carries higher risks, requiring innovative financing structures and public sector support to stimulate private investment. ✴️ The trend towards smaller, decentralized projects presents challenges for traditional financiers. Opportunities: ✳️ These instruments offer promising opportunities for attracting private capital by reducing perceived risks and pooling resources. ✳️ Strong collaboration between governments, development banks, and the private sector is crucial for unlocking the full potential of renewable energy in EMDEs. ✳️ Sharing best practices and providing technical assistance to EMDEs can help them develop effective energy planning and financing strategies. #RenewableEnergy #EnergyTransition #DevelopmentBanks #Investment #Brazil #EMDEs #Sustainability #ClimateChange #IRENA #BNDES #G20 #Decarbonization

Renewable energy projects have a financing problem. Banks won't even talk to them without guaranteed buyers, But here's what's changing the game : A solar farm might generate power for decades, but if there's no committed buyer, lenders see it as too risky. No financing, no project. The renewable energy sits unbuilt. Meanwhile, companies have carbon commitments and need clean electricity. But they can't build their own solar farms or negotiate with every developer independently. Resulting in billions in renewable projects stuck and companies unable to access clean energy. The gap between supply and demand keeps both sides paralyzed. Power Purchase Agreements solve this. A Power Purchase Agreement (PPA) is a long-term contract where a buyer commits to purchasing electricity from a renewable generator at a fixed or indexed price, typically for 10-20 years. Developers get revenue certainty. Banks approve financing. Projects get built. Buyer locks in clean energy at a predictable price plus renewable energy certificates for carbon accounting. Simple mechanism. Massive impact. In 2023, 36 GW of renewable PPAs were signed globally. Corporate PPAs account for over 50% of deals, led by Amazon, Microsoft, and Google. By 2030, corporate PPAs are projected to hit 100 GW. But these barriers kept most companies out: → Long contracts felt risky in unstable markets → Regulations around energy procurement stayed murky → Solar and wind didn't match when companies actually needed power → Small businesses couldn't navigate the complexity Until these startups stepped up: LevelTen Energy tackled price volatility. Largest PPA marketplace connecting 500+ developers with corporate buyers, providing price benchmarks and risk analytics. REDEX solved regulatory complexity. Digital platform helping corporates navigate open access and cross-border clean energy procurement. ReNew addressed generation mismatch. Hybrid solar-wind-storage PPAs aligning with corporate demand, mitigating 4 million tonnes of carbon. Zeigo simplified SME access. Platform making PPA contracting accessible for mid-market companies previously locked out. Clean energy procurement is moving beyond tech giants. Digital marketplaces, standardized contracts, and hybrid PPAs are turning exclusive corporate deals into scalable infrastructure. Projects that couldn't get financed now have buyers. Companies that couldn't access clean energy now have options. Would your company sign a 10-year contract for clean energy if the price was predictable and lower than grid rates? And that's day 9, of Climtober - 31 days demystifying climate solutions, one topic at a time. Come back tomorrow for Day 10 and by November 1st, you'll understand this landscape better than most people working in it. Building climate solutions but struggling to explain why they matter? Check the pinned comment - I help founders turn complex tech into stories that drive real adoption.

The YL Ventures State of the Cyber Nation is out! This annual report we do covers the funding rounds and exits for cybersecurity startups in Israel (given Israel's heavy hitter status in cybersecurity, this view gives some insight into the global cyber ecosystem as well). The news is, after a few lean years, looking good: doubling the funding YoY, increased rounds (especially in seed and C+), and some very notable exits (Noname Security to Akamai Technologies; Dazz and Gem to Wiz, Avalor Security, a Zscaler Company to Zscaler, and Adaptive Shield, a CrowdStrike Company to CrowdStrike). So what should we expect in 2025? More rounds (especially for A & B round companies), more exits (especially strategic exits as acquirers grab value before another round sounds valuations higher), and more split-seeds (as global VCs are willing to take a bit more risk to get onto a cap table earlier). Get the full report here (no regwall): https://lnkd.in/ebxynb2X.

From 0 to $30M: Analyzing the playbooks of 2025's Hottest Cybersecurity Startups I've tracked every major cybersecurity funding round this year through Execweb. The pattern is clear: The startups raising $30M+ aren't following the old playbook. Here's what 7AI ($36M), Noma Security ($32M), Cogent Security ($11M), and Unbound ($4M) did differently: 1. They Sold the Problem, Not the Product 7AI didn't pitch "AI agents." They pitched "Your SOC analysts are drowning in 10,000 daily alerts." Cogent Security didn't sell "vulnerability management." They sold "Threats move at AI speed, but your remediation moves at human speed." The best founders lead with pain, not features. 2. They Built Before They Pitched Every one of these startups had paying customers before raising. Noma: Already protecting GenAI deployments at scale 7AI: Teams using their platform daily Unbound: 7,000+ data leaks prevented pre-funding VCs don't fund ideas anymore. They fund traction. 3. They Targeted New Attack Surfaces Notice what they're NOT building: • Another SIEM • Another EDR • Another firewall Instead: • GenAI security (Noma) • AI-powered SOC automation (7AI) • Enterprise AI governance (Unbound) They found problems created by NEW technology shifts. 4. They Recruited from the Problem Space 7AI founders: Previously built security at scale Cogent team: Engineers from Abnormal, Coinbase, Blackstone Noma founders: IDF Unit 8200 alumni Your team IS your first product. Elite operators attract elite capital. 5. They Priced on Value, Not Competition Traditional model: "Competitor charges $50K, we'll charge $40K" New model: "We prevent $5M in breach costs, we'll charge $500K" The shift from cost-based to value-based pricing changes everything. Here's the brutal truth: In 2025, you can't raise on a pitch deck. You can't compete on features. You can't win by being 10% better. You need: → A problem that didn't exist 2 years ago → Proof you can solve it at scale → A team that's lived the pain → Customers who'll advocate for you → Metrics that show real impact The bar has never been higher. But neither have the rewards. We're seeing $100M valuations at seed stage for teams that check these boxes. Which playbook are you following? If you're building in cybersecurity and want to connect with CISOs who can validate your approach, let's talk. At Execweb (Acquired by CyberRisk Alliance), we've facilitated 3,000+ intro sales meetings between innovative vendors and Fortune 1000 security leaders and facilitated millions in deal flow. The best time to build relationships is before you need them. #Cybersecurity #StartupFunding #VentureCapital #B2BSales #SecurityStartups #GTMStrategy